KARACHI: The government on Thursday invited expressions of interest from potential bidders by June 3 to sell its stake in Pakistan International Airlines (PIA), in line with the International Monetary Fund’s requirement to privatize loss-making state-owned enterprises (SOEs), according to a notice on the privatization ministry’s website.
The fresh bids have been called a week after the Privatization Commission Board on April 17 approved pre-qualification criteria for selecting prospective buyers for the divestment of the government’s 51 to 100 percent shares in Pakistan International Airlines Corporation Ltd. (PIACL).
“In the last financial year (FY24), PIA served approximately 4 million passengers across 30 destinations, carrying out 268 flights per week,” the ministry said in the notice aimed at attracting investors.
This marks Pakistan’s second attempt to raise funds through the privatization of the national carrier, which earlier this month reported its first operational profit of $33.48 million in over two decades.
Prime Minister Shehbaz Sharif’s previous attempt to offload a 60 percent stake in the airline failed last year, attracting only a single bid from a real estate firm that quoted well below the asking price of over $300 million.
In a bid to avoid a repeat, the government said it may offer prequalified bidders incentives such as exemption from sales tax on the induction of aircraft through lease or purchase and additional support to improve PIA’s balance sheet, including indemnification, transfer of certain liabilities and coverage for tax and legal claims, according to the notice.
Pakistan, which has repaid most of its $26 billion in external debt this year through an IMF loan and billions of dollars in rollovers from allies such as China, Saudi Arabia and the United Arab Emirates, had to shift nearly all of PIA’s legacy debt to the government’s books after bidder concerns derailed the previous privatization attempt.
The cash-strapped South Asian nation also plans to privatize PIA’s Roosevelt Hotel Corporation in New York.
The privatization board last week finalized its recommendations on the transaction structure, which will be presented to the Cabinet Committee on Privatization for approval.
The ministry added that demand in Pakistan’s under-served aviation market is expected to grow at a compound annual growth rate of around 6.2 percent over the next four years through FY29.
Pakistan seeks fresh bids for PIA stake sale by June 3
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Pakistan seeks fresh bids for PIA stake sale by June 3
- The government aims to sell as much as 100 percent shares of the airline after a failed attempt last year
- It may offer incentives like tax exemption on aircrafts purchase and liability transfers to attract investors
Pakistan accuses India of manipulating Chenab flows, seeks clarification under Indus Waters Treaty
- Foreign office spokesperson says sudden variations in river flows threaten agriculture, food security and livelihoods downstream
- He also condemns a niqab-removal incident in India, calling it part of a broader pattern of religious intolerance and Islamophobia
ISLAMABAD: Pakistan said on Thursday it had observed abrupt variations in the flow of the River Chenab during the ongoing month, accusing India of manipulating river flows at a critical point in the agricultural cycle and saying it had written to New Delhi seeking clarification.
Local media reported quoted Pakistani officials as saying India released about 58,000 cusecs of water at Head Marala on Dec. 7–8 before sharply reducing flows to roughly 870–1,000 cusecs through Dec. 17, far below the 10-year historical average of 4,000–10,000 cusecs for this period.
Pakistan’s Foreign Office spokesman Tahir Andrabi told a weekly media briefing in Islamabad India had failed to share prior information or operational data on the Chenab flows, a practice he said New Delhi had previously followed under the 1960 Indus Waters Treaty. New Delhi said earlier this year it had put the treaty “in abeyance” following a gun attack in Indian-administered Kashmir that it blamed on Pakistan, a charge Islamabad denied, calling instead for an impartial and transparent international investigation.
Pakistan also described India’s unilateral suspension of the treaty as a violation of international law and an “act of war.”
“Pakistan would like to reiterate that the Indus Waters Treaty is a binding international agreement, which has been an instrument of peace and security and stability in the region,” Andrabi said. “Its breach or violation, on one hand, threatens the inviolability of international treaties in compliance with international law, and on the other hand, it poses serious threats to regional peace, principles of good neighborliness, and norms governing interstate relations.”
Andrabi said Pakistan viewed the sudden variations in the Chenab’s flow with “extreme concern and seriousness,” saying the country’s Indus Waters Commissioner had written to his Indian counterpart seeking clarification in line with procedures outlined in the treaty.
“Any manipulation of river flow by India, especially at a critical time of our agricultural cycle, directly threatens the lives and livelihoods, as well as food and economic security of our citizens,” he continued. “We call upon India to respond to the queries raised by Pakistan.”
He said Pakistan had fulfilled its obligations under the Indus Waters Treaty and urged the international community to take note of India’s “continued disregard” of a bilateral treaty and to counsel New Delhi to act responsibly under international law.
Andrabi maintained Pakistan remained committed to peaceful resolution of disputes with India but would not compromise on its water rights.
In the same briefing, he also condemned an incident in which the chief minister of the Indian state of Bihar was seen in a video forcibly removing the niqab of a Muslim woman during a public interaction, followed by remarks by a minister in Uttar Pradesh who mocked the episode, saying it reflected a broader pattern of religious intolerance and Islamophobia and warranted strong condemnation.
